Early detection and finding help for debt

A sixth sense in balancing funds may be the secret to success

09:42 24 October 2013

Prevention is better than cure. At least that is what they say in medical circles. But what happens when you have no idea about what to look for? This is a concern of most people on the brink of financial turmoil. Some signs are obvious but at times we might not really see them for what they really are.

The following highlights some of the signs that you should look for when you are analysing your debt situation.

Debt symptoms

In order to avoid going under financial stress, the following are some of the signs that you should look for when analysing the level of debt you are in.

• Paying for loans and cards with borrowed money
• Going for the minimum payment for your credit card
• Going for new borrowing  to cover old one
• When you fall behind on your payments
• Cheques that are regularly bouncing
• Your water, electricity and other utilities getting cut off
• Dodging calls from a collection agency
• Deep contemplation about getting a second job to cover your expense

What next?

When you have identified the signs, the next part is confronting the problem. The first step is to look at the resources available to you. Do you have emergency fund? Use it! If not, perhaps there are relatives who can give you something to mitigate the circumstances. If all else fails then you should talk to your lender and come up with an arrangement until your financial situation improves. This will require that you show him or her that you are unable to keep up with your payments.

Getting help

It is important that you act fast so that you can address the debts immediately. Don’t wait until it gets to a point that you are overwhelmed. Hiring the services of a credit counsellor is a good idea so that you can get your house in order.